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Insiders Club - 10.23.2014 Bookmark

10.23.2014

Here we go again....

After four days of intense buying, the market was short term overbought, and quite stretched. It needed a pause day, and yesterday was it. They blamed oil, they blamed the strange shooting situation at the Canadian Parliament. But we tend to think they were excuses rather than reasons.

All night long the futures were soggy. Over in Europe most of the indexes were slightly red. But then they got the juice they needed.

10.19.2014 Financial Intelligence Report Bookmark

Will They Do More QE?

Pull up a chair and let’s chat folks.  This is going to be an interesting letter on a lot of levels, so let’s get started.

Everyone that has any interest in finance knows that the Federal Reserve has had a program in place called Quantitative Easing for the past 5 years. For those of you who don’t understand what it is, the basics are that the Fed’s have printed up money and then used that money to buy Treasuries from the Government and to soak up toxic assets like bad mortgages from the banks. In doing so, it has had the effect of constantly lowering interest rates, since they don’t have to raise rates to “lure” folks into buying the T bills. The Fed’s would buy them at any price, and any rate of return.

But the offshoot of QE was that because they were buying up toxic crap from the banks, AND because Treasuries are also bought from the “primary dealers” ( the big banks) the banks got tons and tons of money to go play cowboy in the asset markets. With virtually zero percent money for the big companies to borrow and buy back their own stock, and all the bank money sloshing around, we’ve had the best bull market that fake money can buy. Stocks are up gigantically since the beginning of the program.

9.29.2014 Futures Red on Hong Kong? Bookmark

This morning we awoke to DOW futures showing a negative 100 points. Well, didn't we just have an almost 200 point gain on Friday? We did. So, what's the Issue??  Let's see....

Insiders Club - 9.26.2014 Bookmark

 

Good morning folks, it's Friday and not a day too soon.

Okay, lets do a quick review here.

On Sunday I devoted the entire letter to the "idea" that the market was set up for what could become a fairly large pull back. We had all sorts of arcane indicators that were flashing the danger signal. But I also said several times that "we've seen this movie before", meaning that the market has been perched on the edge of a cliff multiple times and they just rushed in and saved us. I said it could easily happen again.

9.25.2014 Market PLUNGE!! Bookmark

 

On Sunday we spelled out all the reasons that the market looked poised for a roll over, or in other words a significant correction. Monday looked bad, Tuesday was worse, then Wednesday they came out of the clear blue and bought up everything. All the folks that were short, scrambled to cover and that sent the market soaring. But today, there was NO follow through what so ever and by 11 am we had plunged 200 points. 

Insiders Club - 9.19.2014 Bookmark

 

9.19.2014

Good morning all, welcome to Friday.  It's certainly been an interesting week, and it still isn't "over" so to speak.

Last evening the folks in Scotland voted to say hitched with the UK, which sent ripples of joy through the financial sector. You could see in the action of the overnight futures as they all signaled a big sigh of relief. So, the market has now gotten all it wanted. It got the "considerable time" statement out of Yellen, they got the NO vote out of Scotland, the Iphone is now officially on sale at Apple stores and Ali-babba is launching today in the biggest IPO ever witnessed.

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